Fresh bids emerged for EUR/USD near 1.0925 region, with the bulls now extending the control above 1.0950 amid renewed weakness seen around the greenback against its main competitors.
EUR/USD regains daily pivot at 1.0929
The spot extends its break from a consolidative phase around 1.0930 region and prints fresh five-day tops at 1.0955 amid extension of the sell-off in the buck across the board, in the wake of Friday’s worse-than expected US retail sales and CPI releases. Meanwhile, the USD index breaches 99 support to hit fresh five-day troughs at 98.86 levels.
Moreover, risk-off sentiment appears to have seeped back into markets, after the European equities failed to sustain its opening gains and turned negative, thereby underpinning the funding currency status of the Euro. Germany’s DAX index drops -0.10% to trade near session lows of 12,751.50 points.
Meanwhile, the Euro fails to benefit from cross-driven moves, as solid gains seen in EUR/JPY are partly offset by losses in EUR/GBP amid ongoing broad GBP strength. Looking ahead, the EUR/USD pair is likely to closely track broad based US price-action for further momentum, as the US docket remains fairly light, with no first-tier macro news on the radar today.
EUR/USD Technical Levels
Valeria Bednarik at FXStreet notes, “technical indicators hold well above their mid-lines, but with limited upward momentum in the 4 hours chart. The 20 and 100 SMAs in the mentioned chart head north below the current level, providing support in the 1.0890/1.0900 region. Above the mentioned daily high (1.0955), the pair can advance towards the 1.0980/90 region, while an upward acceleration through this last should see the pair retesting this year’s high of 1.1020. Only below 1.0890 the pair will turn short term bearish, with the next intraday supports at 1.0850 and 1.0820.”